Each week, we’ll round up startup news from the UNC journalism students behind North Carolina Business News Wire. To read all of the students’ work covering public and private companies around the state, sign up for the daily newsletter.

Mooresville-based sleep company Kryo raises $1.3 million

By Chris Roush

A North Carolina company that has developed a unique sleeping system has raised $1.3 million in a private equity offering, according to a filing with the Securities and Exchange Commission.

Kryo Inc. raised the money from four investors, according to the filing. It is seeking to raise another $1.2 million.

The Mooresville-based company was founded by Todd Youngblood, co-founder of Chili Technology and the well-known ChiliPad, and his wife Tara Youngblood.

The Kryo Sleep Performance System uses each individual’s sleep data to optimize sleep through temperature management. The company is targeting athletes, bio-hackers and those who are looking to enhance their overall sleep quality.

The app-controlled smart mattress topper can reach as high as 100 degrees and as low as 60 degrees.

Additionally, the Kryo Sleep Performance System is compatible with fitness trackers. Users can track, control and enhance their sleeping patterns. Kryo can even learn an individual’s sleeping habits and literally warm a user awake.

Companies relying on a Reg D exemption do not have to register their offering of securities with the SEC, but they must file what’s known as a Form D electronically with the SEC after they first sell their securities.


Online motorcycle retailer RumbleON authorizes sale of Class B shares

By Chris Roush

RumbleOn Inc., a Charlotte-based online retailer of used motorcycles, authorized investors to sell nearly all of the company’s Class B shares, according to a Securities and Exchange Commission filing.

Investors were authorized to sell 8.99 million Class B shares, according to the June 29 filing. RumbleOn had 44 stockholders of record with 9.02 million Class B shares outstanding as of June 28, the filing said.

The shareholders are restricted from selling 6.9 million of those shares until Dec. 31. RumbleOn is not selling shares and will not benefit from the investor transactions, according to the filing.

RumbleOn raised $2.48 million in a private placement sale March 31. The proceeds were used to launch the company’s website, purchase vehicle inventory, continue development of its platform, and for working capital purposes.

The company sells its shares OTC, or over-the-counter, which is not part of any major regulated exchange.

The company’s website, RumbleOn.com, initially will sell motorcycles with engine sizes of 650 cc and larger and focus primarily on the Harley-Davidson brand.


Raleigh-based NovaQuest seeks $1.5 billion for new fund

By Chris Roush

A Raleigh-based investment firm that specializes in putting money into biopharmaceutical and health care companies wants to raise $1.5 billion for a new investment fund, according to a June 23 filing with the Securities and Exchange Commission.

NovaQuest Capital Management is seeking investors for its NovaQuest Pharma Opportunities Fund V. Its fourth fund, which was launched in 2015, raised $850 million.

NovaQuest was formed in 2000 to invest in life sciences and health care companies. Today, NovaQuest Capital Management manages over $1.4 billion in investments through two ways — biopharma investments and private equity deals.

On the biopharma side, the company likes product-based investments in late-stage clinical and commercial biopharma programs. It has invested in companies such as Pharmaxis, Hospira and ProStrakan.

On the private equity side, NovaQuest looks for investments in companies with between $20 million and $100 million in revenue and that are cash flow positive.

The SEC filing was signed by John L. Bradley, a founding partner of NovaQuest.

Bradley has nearly 20 years of experience in the health care industry and 30 years of overall experience in finance. He served as senior vice president of the NovaQuest business unit of Quintiles, where he negotiated complex structured transactions, managed asset portfolios and directed the day-to-day finances of NovaQuest.

As senior vice president of Quintiles’ Corporate Development Group, he directed a number of strategic transactions in acquisitions, divestitures, joint ventures, strategic sourcing and debt issuances.

NovaQuest split from Quintiles in 2010.

Companies relying on a Reg D exemption do not have to register their offering of securities with the SEC, but they must file what’s known as a Form D electronically with the SEC after they first sell their securities.